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Executives Shuffled in Reorganization

November 12, 1991

PHILADELPHIA (AP) _ Scott Paper Co. announced an executive-level reorganization today, said it plans to review its options for divestments and expects to make more reductions in the number of people it employs.

The executive reorganization shuffles executives worldwide and appoints two men to head global business efforts.

The moves were intended to focus the company on its two principal businesses, personal care and cleaning products and coated papers for publishing, said chairman and chief executive officer Philip E. Lippincott.

The company announced a four-point program in January to reduce working capital, control capital spending, divest some assets and reduce costs.

The program will ″regrettably result in further employee reductions,″ Lippincott said. Spokesman Michael N. Kilpatric said the jobs cuts couldn’t be specified.

Lippincott also said the company would ″develop further potential divestment options,″ which weren’t specified.

Scott has been trying to divest businesses in three areas since January but hasn’t found buyers, Kilpatric said.

Those areas are most of its food service container business; its bulk non- woven business that includes products such as disposable diaper liners; and specialty papers, including a Westbrook, Maine, mill and a factory in Belgium.

The number of employees in these businesses has been reduced through layoffs, attrition and early retirement, but Kilpatric could provide no numbers. The company employs about 40,000 people worldwide.

In the executive reorganization, John J. Butler, head of European operations, will become Scott’s chief administrative officer, replacing executive vice president J. Lawrence Shane, who is retiring. Butler will oversee all corporate staff.

P. Newton White, head of Scott’s Pacific operations, will head the new global ″away-from-home,″ or commercial, business.

Distribution channels for commercial products in many parts of the world are just being developed and the reorganization will help Scott take advantage of the growing business, said the spokesman, Kilpatric.

Ashok Bakhru, formerly chief financial officer, will head the newly created global wet wipes business, in addition to his duties as head of Scott’s health care business.

Clemens S. Andes Jr., formerly managing director of Scott Ltd. in the United Kingdom, becomes head of consumer business in the Pacific.

Paolo Forlin, managing director of Scott’s Italian business, also will take responsibility for consumer business in Europe.

Ellis A. Horwitz has been appointed vice president and general counsel, replacing senior vice president Norman M. Heisman, who becomes counsel to the board of directors.

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